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Can someone explain why manually keyed transactions cost more than swipes? I'm thinking there's more risk involved with those or something along those lines.
by Igglyboo 12y ago
Can someone explain why manually keyed transactions cost more than swipes? I'm thinking there's more risk involved with those or something along those lines.
- nodata 12y agoIt's easier to enter a fake credit card number than to produce a fake credit card.
- madeofpalk 12y agoYup! Those are referred to as 'card not present' transactions (just like shopping online) and due to the higher risk, there's a higher charge for processing. http://en.wikipedia.org/wiki/Card_not_present_transaction http://en.wikipedia.org/wiki/Card_not_present_transaction
- qeorge 12y agoIn addition to the visible data (the card number, the expiration, and the CVV), there is other information encoded on the stripe that you cannot see (its called Track 2 data). A swiped transaction will include the Track 2 data, but a keyed one will not. The Track 2 data proves that a physical card was present, which carries a far lower risk of fraud, and thus grants a lower processing rate. Notably, in the recent Target breach, the Track 2 data was stolen as well. This means the thieves could print up real, swipeable cards.
- alexchamberlain 12y agoOr it proves the card was cloned?
- deleted 12y ago[deleted]
- btian 12y agoIt's all statistics. Manually keyed transactions have higher fraud rate, thus higher transaction fee.